Wanted: Chinese Capital

11/5/2012 5:23AM

More American companies are trying to get Chinese investors to write checks in the U.S. and cash-strapped states are getting in on the sales pitch. The WSJ's Dinny McMahon discusses the challenges American companies face in wooing Chinese investors.

This transcript has been automatically generated and may not be 100% accurate.

I ... the ... state common topic ... Strine ... we have the US ... is rolling out like ... a switch Chinese investors ... joining me now is Wall Street Journal reporter in Bejing ... Niemi ... D thanks for joining us ... you can really nice piece in the law Street Journal front piece today about these Chinese businessmen traveling to the US can be quite a ... few telephone more about your story ... the oh well ... the Chinese investment the USD peasy trend that is being growing yet is significantly year-on-year ... according to rhodium Group which EU or US consultancy which tracks this trend ... direct investment to Chinese companies ending to the Supreme to investments ... has already hit five point eight billion dollars to six point three billion dollars by the end of the third quarter ... um in the previous annual total ... oh annual record was in two thousand and ten when was five point eight billion dollars worth of Chinese investment the US ... to what my story did did I we both had ... a group of Chinese investors are sixty of them ... of about a third of them came from fourth key Chinese CP Hund on ... Main days of the world's most sophisticated ... investors ... however when they go to the US but wind and I and and and what to expect government spent at the backwoods ... of again on the second uncounted of former President George Bush George W Bush ... yet given the welcoming address ... and that the big oven is a Florida was closed in and Texas ... um and they net over a hundred US companies which will keep the capital ... um ... which is one of the reasons this was such an interesting trade ... on the onthe other hand you have the Chinese organizers were doing everything ... they possibly could to try and ... so the dreams that cultural gap ... I'd to help him take this great band and do what they needed to do tonight and get them in a position where they were but squealing and I able to invest ... very interesting ... to see that the Obama administration has been more friendly and two warrants on quitting Chinese money ... how can this administration has launched a I get so worldwide campaign call with select your site to encourage ... foreign investment in the United stats ... um it's only in China the embassy of the unicorn slips have been working extremely hard to let Chinese investors know that ... I've that the of the US is open for business ... um but on the other side of the equation that sickly are the last two months that ... gets them it's a good message coming from the United States has been a little bit different ... may firstly we we had the bomber administration veto Chinese investment on security grounds ... another potential Chinese investment fell over because the parties involved but that they would ... encounter too many ... political headway in betweens in Washington ... um adult over that you've had ... a congressional committee which pretty much said that China's two biggest ... telecommunication ... other equipment manufacturers' bottle welcome to do business in the United stats so one hand yes this administration is trying to encourage ... in overseas investment but on the other ... the messages that are coming up quickly from the US of a mind that would suggest otherwise ... why is investment starting to pick up now specifically to me ... the ... look out the week the reason is because of a economic slowdown in China ... so for the last few years ... if you A Chinese and you have money to invest or why would you put it anywhere else other than China and India Connie's been growing ... at a ten percent for her how above all ... know the economy is slowing down and the body that but there is an expectation that ... the guise of ten percent growth on all coming back but it's more realistic that we can have seven seven in the office and product which is the guide the government's target ... but for a lot of industries conceivably among the low bids already loaded industrial either capacity in China ... so a lot of entrepreneurs out there probably thinking oh look ... good why would I invest in more capacity in China ... so decided to to look at the same is ... also that the political yet changing that leadership ... which is which can go people thinking that maybe it's a good idea to diversify ... the ownership of assets outside China ... their Avici some hurdles as well and you talk a little but about the challenges that Chinese investors face when the going to the last ... well probably the biggest hurdles over mine and other ones of experience in the courtroom ... I'm ... but a number of being a staggering enterprises ... and now have a lot of experience investing in the States um I don't get it cited internal MNA deals ... mostly a private entrepreneurs are really doing this sort of thing for the first foreign nobody in the United stats wheel United States but for many of them haven't really invested much beyond ... the province along with the provinces in the immediate vicinity ... so that's one reason why she had to start have the experience ... with that comes ... here ... in the U S business is done differently ... having a lawyer to help you through the legal process is very important ... hiring consultants or bank is to help you actually find the deal is also the white thing Saddam ... in China the first step towards you're doing in them an ideal making an investment is making sure you've gotten goods ... elections with local government officials which is not how Wexler United States ... so it's those differences as well as things like Europe ... the language is well which of Barry is but one of the other big changes we've seen recently is because the US needs Capital ... atheism a great willingness on WS sides to ... court Chinese investors but because much of anything that will help the barriers break down ... I thanks very much in demand Washington reporter